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Business owner (Business owner)     03 April 2010

How to sell a ownership right in a family arrangement

Dear learned lawyers, I need some legal advice on this matter. Among three children we had drafted a family arrangement to avoid quarrel. Now one of my brothers wanted to buy a portion of my inheritance ownership under the family arrangement to build a house. He said he would be giving an advance to make sure that I will be selling the future ownership to him when he comes back from Dubai. I am prepared to accept this advance money as I have some financial problem. What form of receipt and in what way I must write so that my brother could give me advance money without compromising my rights under the family arrangement. I told him that I will write this: “ Received Rs. 100,000 as an advance for the future sale of one of my inheritance property under the family arrangement.” Is this sufficient and enough to protect my rights?

Another question is that after getting the advance money can I allow him to construct a house without getting full sale proceeding and money thereto?

Kindly advice in this matter. Thanks in anticipation.



 12 Replies

bhagwat patil (Property due diligence 9422773303)     03 April 2010

in advance mention the perticulars of the propery, then it will not affect another ur holdings

1 Like

adv. rajeev ( rajoo ) (practicing advocate)     03 April 2010

Instead of issuing a receipt for having receipt of the amount you both make agreement deed mentioning all the conditions and descripttion of the property.  It should be signed by wittnesses.

1 Like

Gundlapallis (Advocate)     03 April 2010

Better take an advocate's assistance for drafting.  It's a relinquishment of a part of your inheritence.  'The part' should be determined exactly (location -dimensions - boundaries) and the same should get reflected while taking advance and giving acknowlegement and later final settlement, the relinquishment deed is enough.

Business owner (Business owner)     03 April 2010

This is what I intend to give as a receipt:

A sum of 1 lakh is given to (so and so) by (so and so) as an advance for the creation of interest in the purchase of the property located in (location, area in cents) without relinquishing the inheritance rights. The total price of the property inclusive of the building with door number_______ therein is Rs.___________________. Upon receiving the full amount Rs.____________________ by (myself) who is the legal heir of this property, the inheritance right for this property (location, area in cents) having building with door number____________ shall be relinquished so as to have ownership and construction of the buyers house.

Please advice whether this is sufficient and will not create probems.

bhagwat patil (Property due diligence 9422773303)     04 April 2010

this is sufficient.will not craet a problem.mention the time period for recieving remainig amt.better get drafted by property lawyer. there r specialised layers and document writers u will get nearby your area"s registration office.

1 Like

V.Raghavan (Advocate Madras High Court)     04 April 2010

It is better to be in the form of agreement to avoid future complications.

1 Like

Adv. K.S.A.Narasimha Rao (legalquestadvisor@gmail.com )     05 April 2010

Dear Business Owner,

First of all i would like to suggest you to make clarity with regard to what you are going to sell him by identifying the property with metes and bounds and by the time you receive the amount, you should specifically mention property with metes and bounds and the same shall be accepted by the other share holdrs of undivided properties, since now all three brothers are having only undivided share in the proeprties so now you cant specifically allot him any piece of portion or something else unless there is acceptance of the remaining share holders of the undivided properties. If you go against this logic, there may be chances of your other brother in going to court for creation of litigation. At the same time, you also feel bad in pass a litigation property to your brother.

S.A.NARASIMHA RAO KARRI

1 Like

Gundlapallis (Advocate)     05 April 2010

Mr. Business Owner, as i already told you - dont try anything on your own - take professional help to avoid future complications.

1 Like

Business owner (Business owner)     05 April 2010

While I thank you for the recommendations and suggestion by many learned lawyers here, I must say that the property is divided under a family arrangement. My brother intend to purchase one portion of my inheritance so that he could build a house there. He is prepared to give me an advance to make sure that he could count on that land to construct a house for him. I had slightly modify the receipt as follows:


 
A sum of 1(one) lakh is given to (so and so) by ( so and so) as an advance for the creation of interest in the purchase of the property located in (location, area) without relinquishing the inheritance rights. The total price of the property inclusive of the building with door number_______ therein is Rs.___________________(Rupees ….....) . Upon receiving the full amount Rs.____________________ (Rupees ….......) within 2(two) years by ( myself) who is the legal heir of this property, the inheritance right for this property of area ( in cents) located in (location) having building with door number____________ shall be relinquished so as to have ownership and for the construction of buyer's house.
 
 
All that I included is a time limit within which he has to pay full amount for the value of land for the acquisition of this land by a sale proceeding. If there is a problem with legal conformity, could any learned lawyer be kind enough to draft a legally binding receipt with necessary changes to the above. I am requesting it so, as I have financial problem and thus taking this advance from my brother.
 
Thanks in anticipation.

Business owner (Business owner)     05 April 2010

Upon perusing through the family arrangement I discovered that some properties of my mother is not included in the division of family arrangement. This was purposefully done to compensate an inequality that might arise in the existing division of property arrangement. Therefore I have added an additional statement in the receipt which I intend to give it my brother. The modified one reads as follows:

 
A sum of 1(one) lakh is given to (so and so) by (so and so) as an advance for the creation of interest in the purchase of the property located in (location, area) without relinquishing the inheritance rights. The total price of the property inclusive of the building with door number_______ therein is Rs.___________________(Rupees …........) . Upon receiving the full amount Rs.____________________ (Rupees ….......) within 2(two) years by (myself) who is the legal heir of this property, the inheritance right for this property (location, area) having building with door number____________ shall be relinquished so as to have ownership and to construct there the buyer's ,namely, (buyer's name) house.
 
The properties owned by my and our mother, ( mother's name) and not included in the division of properties by the existing family arrangement shall not affect by this sale proceeding if and when it takes place. The undivided properties outside the existing family arrangement will be kept as equally divisible or to compensate or to award as mutually agreeable whichever applies in due course of time.
 
Some property was kept undivided to compensate any inequality that may arise under the existing family arrangement or to award out of good will with some property or money for looking after my father and mother in their old ages.
 
Kindly advice the the new receipt will not create any future problem.

Adv. K.S.A.Narasimha Rao (legalquestadvisor@gmail.com )     06 April 2010

MR. BUSINESS OWNER,

As i have already told you unless u make in written family settlemen, you cant go ahead with sale or purchase of your future partition. if you go also, it would be a headache for you brother and urself. Becoz, in partition, there will be several complications. Hence, i recommend you first settle the matters on paper and go for sale of your share.

S.A.NARASIMHA RAO KARRI

1 Like

Business owner (Business owner)     06 April 2010

 In the existing family arrangement the property intended for this particular sale is included as being my share. Therefore, if my mother and myself sign this sale transaction, will that preclude any complication arising from my other brother, hereinafter I say, younger brother. The situation is that my youngest brother is returning from Dubai and he needed a place to construct a house. He finds the property that I have in the family arrangement suitable to construct his house. As matters now stand, I am prepared to sell this particular share in the family arrangement to him to facilitate construction of his house. My younger brother is staying out of this as he already has a house. How could we proceed ? A complete settlement of undivided properties may be unlikely at this point in time while my youngest brother wants to build a house.


Kindly advice of any changes if any required in the receipt that I already prepared for him and posted previously.
 
Thank you in anticipation.

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